Volkswagen, Ford Consider Joint Venture In Portugal

On the record - INTERNATIONAL

September 3, 1994

WOLFSBURG, GERMANY — Volkswagen AG said Friday it would review the viability of a planned joint venture with Ford Motor Co. to build a $2.8 billion minivan plant in Palmela, Portugal. In a statement, Europe's largest automaker said that a review had become necessary because of negative currency developments and stiff competition. It said circumstances had changed since its decision in November 1990 to launch the Portuguese plant, 25 miles south of Lisbon. The plant is expected eventually to employ 7,000 people, make a maximum 830 vehicles per day, and provide up to a quarter of Portugal's gross exports.